Moldova’s “Restart” Reform May Cut Tax Revenues of Chisinau and Balti
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Chisinau and Balti may lose some tax revenue from education reforms

Details of the reform of the education system have emerged. It involves the transfer of education departments and, consequently, schools from local authorities to the direct subordination of the Ministry of Education and Research. In this context, the government proposes to reduce the share of personal income tax that remains in the budgets of Chisinau and Balti municipalities from 50% to 45% of the amount collected.
Svetlana Rudenco Reading time: 1 minute
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At the same time, the amendments to the Law on Local Public Finance provide for the reduction of the share of the financial support fund of the administrative-territorial units, used for general transfers to local authorities, from 63.9% to 48.5%. According to the draft, these changes will affect only the second-level local public administration authorities, for which the share of amounts distributed from the financial support fund will be reduced from 29.6% to 14.6%.

These changes take place simultaneously with the transfer of the authority to manage primary, gymnasium, lyceum and special education from the local public authorities of the second level (districts and municipalities of Chisinau and Balti) to the future Territorial Education Agencies. The explanatory note to the draft specifies that these innovations will not affect ATU Gagauzia.

How the transfer of property will take place

At the same time, the executive proposes to amend the Law on public property of administrative-territorial units, in order to authorize the transfer of buildings and land plots used by state educational institutions to the Territorial Education Agencies for free use (comodat).

The draft was elaborated by the line ministry and reviewed at the meeting of the Secretaries General, it is to be adopted by the Government and then by the Parliament.

Earlier, presenting the reform, Minister Dan Perchun said that its main goal is to ensure equal access to quality education regardless of where the school is located. The opposition PSRM faction called the reform an attempt to “centralize the education system”.


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